Electric vehicle startup Faraday Future Intelligent Electric Inc FFIE received a warning from Nasdaq on December 28, 2023, for not maintaining the minimum share price required for listing.
The company's shares were short of Nasdaq's $1 minimum threshold for the prior 30 consecutive trading day period from November 9, 2023, to December 27, 2023, based upon the closing bid price.
The company has 180 calendar days, or until June 25, 2024, to regain compliance with the Minimum Bid Price Requirement.
To regain compliance and avoid delisting, Faraday Future must boost its share price above $1 for at least 10 consecutive days by June 25, 2024.
During the compliance period, the company's class A common stock will continue to be listed and traded on The Nasdaq Capital Market.
On August 22, 2023, the Board approved a 1-for-80 reverse stock split.
Despite efforts, including the reverse stock split, the company's shares have plummeted by approximately 96% since September. This steep decline is attributed to ongoing financial challenges and supply chain disruptions, reported Reuters.
Faraday Future disclosed in September its plans to raise up to $90 million through a stock offering.
Cash as of September 30, 2023, was $8.6 million, including $1.9 million of restricted cash. In addition to its financial woes, Faraday Future was reportedly embroiled in a governance dispute with FF Top Holding, one of its major shareholders.
Price Action: FFIE shares are trading lower by 7.33% at $0.2401 on the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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